Testing Question regarding Forfeitures

[Guest KD40]

I have a plan that allocated forfeitures, for previous plans years (1999, 2000 and 2001), in year 2002. They sent us the spreadsheet on who got what. My question is now if those dollars need to be tested for the 415 test in 2002?

[Tom Poje]

sorry, I don't have a cite for you, but they should apply to the year in which they were required. Logically that only makes sense.

Consider a couple of examples.

A terminee who quit in 2000. You have given him forfeitures this year, yet his comp is 0, thus his 415 limit would be 0. you could never make a correction.

Or consider an ee who had missed contributions for a number of years - and is due 50,000. since the maximum is only 40,000 you couldn't make a full correction in the current year

oh, see, I am so slow that while writing this I found the cite, under 2002-47

PArt III, section 6.02(4)(B)

[Guest KD40]

Thanks very much Tom.

[2muchstress]

Tom,

Whenever I try to apply logic and common sense, there is always some dumb regulation that proves me wrong. How is it that everytime you apply logic, it works?

[Tom Poje]

2much:

I was trying to think of something witty to say, but nothing comes to mind so you will have to put up with the honest answer.

I brown bag it for lunch, and then take a walk for the remainder of time. A little prayer time, and time for other reflection just to clear my mind, and the ideas simply come to mind.